What Is Umbrella Insurance?
Umbrella Insurance provides liability protection in 2 ways:
1. Additional Liability Coverage for Home & Auto Insurance
Umbrella policies have deductibles, so you will want to make sure your home and auto insurance have the right amount of liability coverage.
An estimated 70% of umbrella claims are due to additional coverage in an auto accident.
2. Covers Risks that May Not Be Covered by Other Insurance Policies
Here are some scenarios where a lawsuit against you could occur:
a. Having parties where alcohol is served and the patrons drive home and injure someone
b. An incident outside of your neighborhood involving your pet
c. Incidents while traveling abroad
d.You can be held liable for incidents occurring at your rental property
We suggest having liability coverage equal to 1-2x your assets.
This level of coverage is also recommended by the nonprofit United Policyholders.